Shares of Aaron’s fall as 2nd-quarter profit declines; Raymond James analyst cuts estimate

Aaron’s shares fall on weaker 2nd-quarter profit

NEW YORK — Shares of Aaron’s Inc. fell Tuesday after the furniture rental and sales company posted second-quarter results below analyst estimates.

THE SPARK: Late Monday, Aaron’s announced second-quarter income of 30 cents per share, down from 34 cents per share in the same quarter last year.

THE BIG PICTURE: The performance of rental stores like Aaron’s can show how consumers feel about the economy. Generally, people would opt to rent rather than buy furniture when they aren’t confident about the economy.

THE ANALYSIS: Raymond James analyst Budd Bugatch maintained his “Outperform” rating and $20 price target on shares of the Atlanta-based company. However, he cut his full-year profit-per-share estimate to $1.43 from $1.47.

SHARE ACTION: Shares slid 45 cents, or 2.5 percent, to $17.86 in afternoon trading Tuesday.